India will be oil's next big growth centre: S&P Global Platts

Commodities price reporting agency S&P Global Platts has projected that India would become the next big growth centre for oil based on the fact that demand for most oil products hit record highs last year and the recent rising momentum of demand for cleaner cooking gas or LPG.IANS | July 20, 2016, 17:31 IST

New Delhi: Commodities price reporting agency S&P Global Platts has projected that India would become the next big growth centre for oil based on the fact that demand for most oil products hit record highs last year and the recent rising momentum of demand for cleaner cooking gas or LPG.

"For most of last year, demand has seen average of 10 per cent growth. Demand for most oil products hit record highs," the Amercican agency said in a report.

"Market participants expect gasoline and gasoil to rebound to levels closer to double digits in the second half of the year," said S&P Platts Oil News and Analysis Editor Sambit Mohanty.

"In addition, the policy move last month lifting salaries of government employees could boost car demand, which in turn could lift gasoline consumption," he said

Meanwhile, LPG has "added a silver lining" to the Indian growth story," the report said.

"A raft of government intiatives to promote cleanfuels lifted LPG demand to record highs in March. And the momentum continues. We saw demand growing by 9 per cent in June and around 10 per cent in the first half," Mohanty added.

The report noted that the government has plans to provide more subsidies for 50 million new LPG connections for lower income families.

"This is leading analysts to believe that LPG demand growth will be closer to double-digits for the whole of 2016," it said.

"In addition to LPG, a booming petrochemicals sector has also come as a blessing for naphta, which saw demand growth of 16 per cent in June," it added.

“To save the environment and to fight climate change, my government has planned a major campaign. By 2022, we want to generate 175 GW of renewable energy. In the last three years, we have already achieved 60 GW or around one-third of this target,” he said.